Reviving the Lost Art of Naming the World Social Science Act Ansers

Abstract

For the economic recovery from the COVID-xix crunch to be durable and resilient, a render to 'business organization as usual' and environmentally destructive investment patterns and activities must be avoided. Unchecked, global environmental emergencies such every bit climate change and biodiversity loss could cause social and economic damages far larger than those caused by COVID-19. To avoid this, economic recovery packages should be designed to "build back meliorate". This means doing more than than getting economies and livelihoods apace back on their anxiety. Recovery policies too need to trigger investment and behavioural changes that will reduce the likelihood of hereafter shocks and increase guild'south resilience to them when they do occur. Central to this arroyo is a focus on well-being and inclusiveness. Other primal dimensions for assessing whether recovery packages can "build back better" include alignment with long-term emission reduction goals, factoring in resilience to climate impacts, slowing biodiversity loss and increasing circularity of supply chains. In do, well-designed recovery policies can cover several of these dimensions at once, such as catalysing the shift towards accessibility-based mobility systems, and investing in depression-carbon and decentralised electricity systems.

1. Governments' first priorities in tackling the COVID-19 pandemic have been to overcome the health emergency and to implement rapid economical rescue measures, the latter mostly aimed at providing essential liquidity and protecting livelihoods in the face of abrupt losses of income. As the wellness crisis gradually abates in some countries, attention is now turning to preparing stimulus measures for triggering economic recovery. This policy brief examines how these stimulus packages can create a recovery that "builds dorsum better", i.east. not simply getting economies and livelihoods back on their feet quickly, but as well safeguarding prosperity for the longer term. This means triggering investments and societal changes that will both reduce the likelihood of futurity shocks and improve our resilience to those shocks when they exercise occur, whether from illness or environmental degradation. At the heart of this approach is the transition to more inclusive, more resilient societies with net-aught GHG emissions and much reduced impacts on nature. Other OECD policy briefs examine the part of environmental wellness in strengthening resilience to pandemics (OECD, 2020[one]) and COVID-19 and the low-carbon transition (OECD, forthcoming).

A more than resilient economic system depends on a shift to sustainable practices

2. In addition to the immediate homo suffering acquired by the disease itself and the loss of livelihoods for millions, the COVID-19 pandemic has also highlighted several key vulnerabilities of our societies and economical organization. Global interconnectedness has helped to create huge economic and social benefits for decades, albeit unequally, simply also facilitated the rapid spread of the pandemic. More broadly, the speed and depth of the economic crisis accept shown that a core principle of the global economy – prioritising short-term economic growth and efficiency over long-term resilience – can have huge societal costs. The precariousness of long and complex global value chains has been revealed, with many countries struggling to larn medical and other strategic supplies. Social inequalities have been exposed and rapidly exacerbated by the massive merely uneven loss of employment, with the equivalent of more than 300 million jobs potentially at risk (ILO, 2020[2]). Although this is not the showtime economic crisis to betrayal these frailties, the depth and breadth of the electric current circumstances take brought the issue of resilience and preparedness high in the public consciousness.

iii. The exposed vulnerabilities are particularly sobering when seen in the light of an even bigger time to come threat to the global economy: environmental degradation driven by our electric current economic system. The world'south environmental emergencies are as pressing as always, even if they may seem distant during such a very human being crunch. The impacts of climatic change, air pollution, biodiversity loss and poor bounding main wellness already cause immense suffering globally and harbour further systemic vulnerabilities for the global economy that could ultimately eclipse the current crisis. Physical and economic impacts from climatic change are already being felt, and some regions have experienced farthermost weather events at the same fourth dimension as tackling COVID-xix, such equally super-whirlwind Amphan in Bangladesh and Typhoon Vongfong in the Philippines (Un, 2020[3]). Without structural changes to our economies, continued accumulation of greenhouse gases (GHGs) in the temper will lead to potentially catastrophic further impacts. While the economic shut-downward has led to some widely-reported ecology improvements, such as reduced emissions of GHGs and air pollutants and less h2o pollution, these in themselves volition have well-nigh no long-term affect (Le Quéré et al., 2020[iv]). If economic action resumes as before, they are likely to be temporary and quickly erased. Indeed, GHG emissions rebounded and resumed growth in the aftermath of the recent economic crises (OECD, 2020 forthcoming).

4. These interlinked environmental crises may also heighten the likelihood and likely impact of future infectious diseases. The economic pressures driving biodiversity loss and the destruction of ocean health can have cascading impacts on societies, and may increase the risk of future zoonotic viruses (those which leap from animals to humans) due to the expansion of human activities leading to deforestation, combined with the increased need for and trafficking of wildlife (Jones et al., 2013[5]). Declines in local environmental quality, including air and water pollution, tin influence the vulnerability of societies both to disease and to the furnishings of a less stable climate, with impacts likely to touch poorer communities more (OECD, 2020[1]).

5. Returning to "business organisation equally usual" volition non deliver a sustained long-term economic recovery that also improves well-being and reduces inequality. With massive stimulus packages starting to be unveiled effectually the world, governments, businesses and societies as a whole have both a responsibility and self-involvement to not only look for near-term measures to shore-upwardly livelihoods and employment, but also to have a step back and reverberate on the political and economical driving forces leading to the current crunch.

half dozen. Despite encouraging signs from governments, businesses and citizens, recovery plans have so far more often than not fallen short. Many governments have recognised the need and opportunity of a sustainable recovery. For example, in April 2020, the G20 Finance Ministers agreed to "commit to support an environmentally sustainable and inclusive recovery" (G20, 2020[6]). Encouragingly, an international poll roofing adult and developing countries as well suggests that a majority of citizens see a focus on environmental issues as a continued priority as we emerge from the COVID-19 crisis (IPSOS MORI, 2020[7]). The fragilities exposed by the pandemic may deed to underline the reasons that environmental issues were becoming acme political priorities around the earth before COVID-nineteen struck. In 2019, millions of people, spearheaded past youth, protested in the streets for climate action, leading to several governments officially declaring a "climate emergency". Biodiversity loss and the ongoing mass species extinction were also gaining headlines around the world, and the visible crisis engulfing the world'south oceans had become a front-line political issue in several countries. As recently as January 2020, climatic change and biodiversity loss topped the World Economic Forum'due south list of global risks (World Economical Forum, 2020[viii]). The social and economical case for a sustainable, resilient recovery is very clear. Despite this, economical recovery measures proposed so far take mostly scored poorly on environmental metrics, with unsustainable support outstripping sustainable measures in many countries (Vivid Economics, 2020[nine]). While there is meaning support for "green" technologies and industries, in particular in European countries, in many cases this is outweighed by ongoing support for "brown" activities that may lock-in emissions intensive pathways.

"Building Back Ameliorate": key dimensions for a resilient economic recovery

7. The term "Edifice Dorsum Improve" has been increasingly and widely used in the context of the economical recovery from COVID-19 (WRI, 2020[ten]) (We Mean Concern Coalition, 2020[11]). The notion originated in the context of recovery and reconstruction from physical disasters1, with an emphasis on making preventative investments that better resilience to, and so reduce the costs of, hereafter disasters. The challenge of re-igniting the global economy in the aftermath of the economic crunch triggered by COVID-19 is of class unlike. In that location has been no concrete disaster, and the focus is global. Yet the economic crunch is and so astringent, the risks from returning to previous patterns then high, and the opportunity to embrace a more sustainable recovery so clear, that the term is relevant in this context. Even at the global level, there is still an accent on prevention, equally the investments and behavioural changes made will pay dividends in the time to come through reduced exposure and increased resilience to plush time to come disruptions – whether due to climate change, disease, or a confluence of these or other factors.

viii. To "build back amend", recovery measures can be assessed across a number of primal dimensions (Figure 1). Common to all these dimensions is the need for urgent decisions taken today to comprise a longer-term perspective. For instance, assessing measures against these dimensions can expose where competing potential targets for stimulus spending may offer similar virtually-term benefits in terms of task creation, but very unlike long-term outcomes for sustainability and resilience (for example, whether or not the stimulus leads to investment in long-lived high-emitting infrastructure that may lock-in GHG emissions far into the hereafter).

Effigy 1. Fundamental dimensions for Building Back Ameliorate

9. A central dimension of building back better is the need for a people-centred recovery that focuses on well-being, improves inclusiveness and reduces inequality. To improve public back up, recovery policies need to be measured on more than than just economic growth and full job creation. Emphasising other elements that improve well-beingness, such as income, job quality, housing and health is important to achieve this (OECD, 2020[12]). More specifically, where stimulus packages target environmental objectives, a focus on people's well-being is also crucial to cement the social and political acceptance of environmental measures (OECD, 2019[13]). Even before the crisis, the bear upon of environmental policies on inequalities among and within countries, and between genders, was a mounting key concern in several regions, and this is even more critical in the electric current context. Means for ensuring that environmental measures are socially inclusive include making taxes and subsidies progressive (supporting the most vulnerable) and preparing the workforce for the green transition, for instance by adapting and adopting "But Transition" principles refocused for an era of economic crisis and recovery (OECD, 2017[14]).

ten. The relative importance of the other dimensions will likely vary across different land contexts, according to their development priorities, infrastructure needs and social circumstances, in detail for developing countries. These dimensions include:

• Aligning recovery measures with long-term objectives for reducing GHG emissions. Avoiding the worst impacts of climate modify is key to future resilience and stability. A careful cess of the influence of stimulus packages on futurity GHG emissions trajectories is crucial, including in the context of moving towards net-zero emissions. This relates both to near-term emissions of economic activities receiving liquidity back up, also as long-term structural implications of potential lock-in through infrastructure investment decisions facilitated by recovery packages. The long-lived nature of infrastructure investments likely to exist made through stimulus packages means that decisions fabricated now will have implications for decades to come, and could decide whether the world tin achieve its goals of averting the worst impacts of climatic change.

• Strengthening resilience to the impacts of climate change. Resilience to climatic change is 1 specific aspect of improving the overall resilience of economies and societies. In detail, infrastructure networks will confront increasing pressures from the impacts of climate change, but likewise play an of import part in building lodge's resilience to those impacts. Infrastructure investment is likely to exist a central component of recovery measures in many countries – in role because of job creation potential – and information technology is important to ensure that infrastructure investments are climate resilient and do not increase exposure and vulnerability. This will reduce straight economic damages from climate related disasters and minimise the indirect costs created by the cascading impacts caused by the disruption of both disquisitional services and economical activities. New infrastructure investments, including in low-carbon developments, need to build in resilience confronting time to come climate impacts, by assessing climate risks across the lifetime of the project. Retrofitting existing infrastructure is more costly, both organisationally and in terms of physical investment (OECD, 2018[xv]).

• Integrating more aggressive policies to halt and reverse biodiversity loss and restore ecosystem services, including through nature-based solutions. Biodiversity and ecosystem services are fundamental to economic activities and human health; deforestation and other country apply change have been linked to the spread of diseases. Investment in natural infrastructure such every bit reforestation and wetland and mangrove restoration are not only a cost effective and sustainable manner to improving resilience to climate impacts, but offering employment opportunities similar to human-fabricated infrastructure investments. Investments targeted through stimulus packages need to better assess and value biodiversity and ecosystem services, and integrate these values into decision-making. In addition, regime back up that is potentially harmful to biodiversity must exist identified and reformed. Additionally, valuing natural upper-case letter is integral to improving a range of environmental health dimensions that are important for societal resilience to pandemics and other shocks (such as cleaner air and water (these issues are covered in detail in another policy brief (OECD, 2020[1]))

• Fostering innovation that builds on enduring behaviour changes. Continued technological and process innovation will be disquisitional to achieving climate and other sustainability goals. Governments play a key part in fostering an innovation ecosystem, well beyond funding basic inquiry and development (OECD/The World Bank/Un Surroundings, 2018[16]). Even so, the COVID-19 pandemic will affect cultural norms and behaviour in ways that are non yet known. To be effective at creating jobs and improving resilience, stimulus packages need to take into account potential behaviour changes that could touch on the saliency of unlike policy measures, including for innovation. For example, tackling reluctance to take public transport by encouraging measures to reduce crowding, meliorate hygiene and to encourage "active" transport modes; introducing measures that meliorate support remote working (including well-being aspects) in order to reduce demand for ship such as encouraging remote working and events.

• Improving resilience of supply bondage, including through increased adherence to round economy principles: the COVID-19 pandemic and containment measures accept raised new questions near the systemic resilience of circuitous global production methods and value chains, triggering renewed involvement in more diversified and more localised production and shorter supply chains in certain sectors. The environmental implications of such a shift are far from articulate, but there is a role for policy, including through stimulus packages to ensure that local supply chains practise genuinely meliorate resilience and reduce environmental impacts, including by improving resource efficiency and increasing circularity of supply chains.

11. Fortunately, designing stimulus measures in this way does not mean starting with a blank slate. International agreements already exist across many of these dimensions, such as the Paris Agreement on climate change, the Aichi Biodiversity Targets, and the Sendai Framework for disaster risk reduction. The Un Sustainable Development Goals also provide an overarching compass for ensuring that social evolution and well-beingness is fully integrated with ecology objectives. In terms of policy measures, many of the needed deportment to build back better and amend resilience through stimulus packages can build on existing knowledge of policy design implementation. For example, although GHG emissions were growing until 2019, the feel from more than two decades of designing and implementing climate responses and assessing their effectiveness remains relevant. Similar policy knowledge exists for halting and reversing biodiversity loss, and improving circularity of material use, among others. Additionally, there are some primal lessons from environmental measures integrated into stimulus measures following the global financial crisis in 2008-09 (Agrawala, Dussaux and Monti, 2020[17]).2

"Building Back Better" in exercise

12. This section provides some primal examples of opportunities for "building dorsum better" across sectors, highlighting where public stimulus spending could be oriented to marshal across several of the in a higher place dimensions simultaneously. These examples are clearly not exhaustive, but are highlighted here because of their relevance for where stimulus investments tin can catalyse important systemic change in economic sectors while also meeting the urgent need for creating employment, or otherwise trigger changes necessary to back up longer-term resilience outcomes. While these examples cover a broad range of specific policy areas, some overarching policy guidance is provided in Box i.

Enhancing biodiversity while ensuring a resilient supply of food

13. Biodiversity and natural infrastructure such every bit forest, wetland and mangrove ecosystems, are essential inputs for many economical activities, and are central to hundreds of millions of livelihoods. Natural ecosystems are also essential pillars of resilience. Yet almost of this natural capital is undervalued in the economy, or valued only as a harvestable commodity and not for the vital ecosystem services provided. The unpriced natural capital consumed by primary product (agronomics, forestry, fisheries and mining) and some primary processing sectors (including cement, steel, pulp and paper) was valued at USD 7.3 trillion in 2013 (Natural Majuscule Coalition, 2016[18]). However, despite the introduction of some policies to value biodiversity, in item through payments for ecosystem services, virtually existing approaches to measure and value natural capital loss remain express (OECD, 2019[19]). Through recovery packages, governments may take leverage to increase private finance for nature-based solutions and to enlarge the commitment of businesses and investors to mensurate biodiversity impacts, dependencies, risks and opportunities, e.g. through conditions for fiscal support in recovery packages to agriculture and other sectors with shut links to biodiversity (OECD, 2019[19]).

What policy can do

While the multiple dimensions of "building back better" bridge many specific policy areas, some key recommendations for governments to consider are:

• Screen all elements of stimulus packages for their longer terms implications across the key dimensions outlined to a higher place, prioritising actions that:

  • Combine benefits for jobs and reducing inequality with implications for longer-term resilience, including by avoiding locking-in emissions intensive infrastructure and systems.

  • Tin exist implemented quickly, including "shovel-ready" targets for public investment and existing policy frameworks that can be rapidly scaled up

  • Favour cross-sectoral, cantankerous-regime approaches that have a long-term, systemic view rather than single technological outcomes

• Build pipelines of "shovel-set up" sustainable infrastructure projects: accept co-ordinated cross-ministry building action to build pipelines of sustainable projects that tin exist implemented chop-chop, while fugitive favouring established emissions-intensive activities just considering they are fast

• Maintain (and increase) ambition of long-term ecology objectives (including net-zero GHG emissions) and ensure that policies and investments triggered through stimulus packages are aligned with those outcomes, for example:

  • Avert relaxing existing environmental regulations to provide nigh-term relief, as the costs of longer-term vulnerability volition often outweigh short-term economic relief

  • Make subsidies and other authorities support for specific industries provisional on both environmental improvements (including GHG emissions) and better overall resilience (including for the workforce)

  • Make energy pricing coherent as part of fiscal reorganisation post-crunch, including phasing out fossil-fuel subsidies and building carbon pricing that includes social protections (e.g. using carbon pricing acquirement to mitigate distributional implications for households, also as to finance support for structural aligning of workers and communities).

• Actively back up development of green finance flows to improve resilience, encouraging longer-term horizon for financial decisions:

  • Measure the consistency of investments and financing with climate change mitigation and resilience, building on existing individual and public sector initiatives (Jachnik, Mirabile and Dobrinevski, 2019[20])

  • Promote robust and transparent definitions and standards for dark-green finance in order to guide financial allocations and investment (including taxonomy approaches);

  • Increase potential for public finance to catalyse individual investment by further empowering public finance institutions: eastward.chiliad. by increasing lending authority and ability to co-invest.

  • Increase and improve capacities to assess, manage and publicly disclose climate change-related fiscal risks, building on existing frameworks and approaches (e.g. TCFD, NGFS).

• Design public procurement processes that value both resilience and low-carbon as well every bit promoting innovation: for example ranking bids based costs over the asset lifetime under different climate impact scenarios, and accounting for life-cycle GHG emissions.

• Provide specific support for reskilling and grooming for industries affected by the immediate crisis and longer-term decarbonisation, along with supportive policies such as reforming housing policies to encourage mobility.

xiv. The nutrient sector is fundamentally important for the conservation and sustainable employ of natural capital, and ultimately dependent on it. Secure food supply is essential for well-being and economic stability – indeed even to sustain life – meaning that the availability and affordability of food are likely to exist key government priorities coming out of the crisis (OECD, 2020[21]).

15. The agronomics sector faces growing threats including from climate change and infectious diseases of plants and livestock. It is as well a major driver of environmental degradation. Land-use change, including for agronomics, is responsible for a big part of deforestation. Furthermore, excessive fertilizer utilize has of import implications for freshwater and ocean ecosystems due to nutrient run-off. Increased ecosystem pressures due to agriculture could likewise accept implications for potential creation of new human diseases. Agronomical expansion into zones shut to wilderness areas increases pressures on biodiversity, and agricultural intensification, for instance with denser livestock populations, can increase the chance of zoonotic transfer of viruses beyond species (Jones et al., 2013[five]).

xvi. Agronomics already receives substantial authorities support globally. In 53 countries analysed by the OECD, farmers received around USD 528 million in support in 2019 (OECD, 2019[22]). In addition to securing jobs and preventing nigh-term supply disruption, recovery measures should aim to reshape policies in the sector to promote environmental sustainability and resilience, and innovation for improved productivity. In the context of the COVID crisis, at that place is potential to focus on reform of the most harmful and distortive measures, including but not limited to the reinforcement of coupled supports (i.e. those proportional to production or livestock), too equally the relaxation of environmental regulation. Such measures could otherwise contribute to locking-in unsustainable practices and delay the transition of nutrient systems towards sustainable practices. Investments and grooming aimed at triggering farmers' transition to more sustainable agricultural practices would do good the environment, climate, every bit well as farmers' livelihoods.

17. More generally, patterns of consumer nutrient choices can be important levers for ambitious climate mitigation equally well as for improving health and well-being through balanced diets. Where access to sufficient protein is non an result, policies to promote lower-emission food choices may also help, such as encouraging more found-based food choices or shifting to sourcing from lower-emission livestock systems. Measures that could contribute to such objectives include public communication campaigns or education. It is also crucial that, governments address the issue of food security for vulnerable populations. Food stamps and increased subsidies may also be an selection to help vulnerable populations, equally long as physical access to healthy food and diets is ensured.

Investing for low-carbon, resilient electricity systems

eighteen. Economic stimulus packages can help advance the shift towards a zero-carbon, climate-resilient electricity organisation while creating jobs. While large-calibration renewables remain important in this regard, distributed renewables, demand-side energy efficiency and improving the flexibility of the power system are also important opportunities.

19. Energy-related stimulus measures demand to consider the changed context of the global energy system, with a historic reduction in energy need expected in 2020, contributing to extremely depression and volatile fossil fuel prices (IEA, 2020[23]). Enduring low oil and gas prices reduce incentives for energy efficiency and renewables, likewise as leading to reduced investment in fossil fuel industries. Energy investment is expected to decline sharply in 2020, even for renewables (IEA, 2020[24]). In this context, using stimulus spending to invest in and mobilise finance for 'shovel-prepare' utility-scale renewables (e.g. wind and solar photovoltaic) remain primal levers for a sustainable economic recovery. Just this is only role of the story. Stimulus packages tin can additionally seek to drive investment in other measures that accelerate decarbonisation while also improving resilience of the electricity system, both to climate impacts and demand shocks such as that triggered by the current crisis. Examples include energy efficiency, distributed energy resource and improving the flexibility of the ability system. In developing countries, measures that increase electricity access, including through off-grid or mini-grid renewable systems, tin can have many benefits for employment, well-being, health and societal resilience ( (IEA, 2017[25]).

twenty. Energy efficiency is a clear candidate for a green recovery package just it is essential to achieve climate goals and is often by and large labour-intensive. More than 3.3 meg people are employed in energy efficiency in the US and European union alone, most of them in small and medium sized enterprises (IEA, 2020[26]). Prioritising energy conservation and distributed energy resources as well improves the resilience of the power arrangement while delivering on a number of well-beingness benefits (enhanced affordability, lower environmental footprint, lower investment needs in network infrastructure). Beyond power, an of import target for free energy efficiency is the building sector (covered beneath). Energy efficiency beyond the economy tin also hateful a switch to electricity for free energy uses previously directly using fossil fuels, such as electrification in industry, curl-out of electric vehicles and electric estrus pumps as part of building energy efficiency measures (IEA, 2018[27]). While this electrification trend can take substantial benefits for reduced air pollution at the point of utilize, the implications for GHG emissions depend on the decarbonisation of the underlying electricity system, as well equally its ability to handle the increased need pattern.

21. Challenges to scaling up energy conservation and distributed free energy resources during the recovery include the relatively pocket-size scale of these projects and potential liquidity constraints for both households and firms. Governments could leverage on existing programmes, create 'project pipelines' of shovel-ready projects, and identify partners (e.1000. utilities, municipalities, housing associations) and channels (e.g. energy efficiency obligations, on-beak financing) that help scale upwardly the programmes in the short-term without creating a nail and bust wheel (IEA, 2020[26]). These measures can be accompanied by investments in preparation to reduce skill shortages in the power and energy sector, including for free energy organisation engineers and building retrofit specialists.

22. Another important target for stimulus packages is public investment in flexibility of power systems. This can include electricity storage (notably lithium ion batteries, also essential for electric transport), smart grids (east.m. rollout of smart meters) that are crucial for need response, facilitating the integration of variable renewable free energy sources and improving interconnection of grids. The lock-down measures imposed during the COVID-19 crisis accept shone a spotlight on the importance of grid organization flexibility, because falling demand has raised the share of renewables due to their priority acceleration and low-running costs. Finally, innovation in the energy sector is essential for technologies that will be essential for reaching net-zero emissions over the longer-term, including carbon capture and storage.

Energy efficient housing as function of compact, resilient and sustainable cities:

23. The confinement of hundreds of millions of people to their homes due to COVID-xix has highlighted major failures in the housing sector and illuminating social inequalities related to the quality and condolement of dwellings and building services such as sanitation. Situations where poor quality housing increases inequality by posing major threats for security and wellness have become always more visible, including through indoor air-pollution, as well through increased living costs due to poor energy efficiency.

24. Cities, and the building sector more broadly, are key targets for energy efficiency improvements. Buildings business relationship for nearly 30% of global CO_two emissions, both through direct called-for of fossil fuels for heating and indirectly through their electricity consumption (IEA, 2019[28]). To reach the goals of the Paris Agreement, there is a strong need both for retrofit of existing building stock and for new builds to meet stringent energy-efficiency standards. Despite the articulate benefits of investing in building efficiency, the barriers are well-known, including the demand for upfront upper-case letter, behavioural inertia and split incentives between landlords and tenants. In emerging economies, the investment gap for dark-green buildings is estimated at USD i trillion annually according to the IFC. While country contexts vary for both types of investments, policy gaps (e.chiliad. the need for edifice standards and incentives for energy efficiency), and the demand for robust and scalable business organization and financing models, are typically key factors standing in the way of accelerated investment. Stimulus packages could therefore be disquisitional to invest in the massive retrofits needed to reduce GHG emissions from the building stock at the same time as improving living conditions and creating jobs. Measures include direct grants, taxation breaks for efficiency investments and potentially scrappage schemes for inefficient household appliances. Adept experience with such measures was gained from stimulus measures following the 2008 fiscal crunch (Agrawala, Dussaux and Monti, 2020[17]). Policy incentives for residential energy efficiency besides present articulate opportunities for attracting private sector investment ( (I4CE, 2020[29]).

25. More broadly, economic recovery measures need to consider better coordination between housing policies and wider urban planning. In many countries urban planning has led to sprawling cities, with structurally college GHG emissions and air pollution than dense cities, for several reasons including increased reliance on private cars. The COVID-19 pandemic could exacerbate this trend through an increase in demand for less dense neighbourhoods. For instance, city dwellers may seek single-family homes in less dumbo neighbourhoods, due to a perception of higher infection run a risk in more dense housing. This could run counter to efforts to curb GHG emissions and could create a tension between balancing futurity resilience with mitigation. Transforming cities into liveable places where people want to live and stay can help start this trend and contribute to both decarbonisation, resilience and lower inequality. Measures could include integrating programmes to retrofit buildings as office of wider sustainable development plans for neighbourhoods. In addition, creating the weather for the uptake of eco-districts, both every bit part of urban revitalization and new developments, tin can help to make cities bonny places to live, as well every bit improving resilience to climate change impacts such as more intense heatwaves. Finally, promoting mixed state-uses and enhancing walking and cycling accessibility are key, providing back-up in transport options that is a pillar of improved resilience, discussed further below.

Catalysing the shift towards accessibility-based mobility systems

26. For passenger ship, stimulus packages should aim to combine support for a transition to less polluting cars with investments that initiate a shift towards accessibility-based mobility. The automotive sector is a major global employer, accounting for around 14 meg jobs globally, and has been severely affected past the COVID-nineteen crunch (ILO, 2020[thirty]). As governments consider longer-term support for ailing car manufacturers, they tin can ensure that such support is contingent on environmental improvements including accelerating the shift to electric cars as well every bit more efficient, cleaner Water ice vehicles. However, recovery measures should also embrace a shift towards mobility systems designed around accessibility (the ease of reaching jobs, services, leisure activities, etc.), rather than just emphasising an accelerated uptake of private electric vehicles. The latter would lock-in individual vehicle ownership and low-occupancy vehicle use. This would limit the overall emissions reduction potential of the transport sector, and besides implies a less resilient system due to overreliance on one transport mode. A mobility organization based heavily on private vehicles is also badly equipped to achieve other social and economic goals (due east.thou. reduced inequality, better health and less congestion).

27. Investing in public transport remains essential both for mobility and for jobs: almost as many people piece of work in public send equally in the car manufacture (thirteen million) (UITP, 2017[31]). However, governments need to recognise new challenges for public ship, such as people existence reluctant to have mass transit for sanitary reasons (ITF, 2020[32]). As well as urgent hygiene and social distancing measures, over the longer term financial back up and infrastructure spending could be targeted to raise chapters, reduce crowding and rebuild the entreatment of public send, especially every bit chapters is likely to exist strained while social distancing measures remain in identify (Liebreich, 2020[33]). Already some cities have benefited from traffic drops during the contingency phase to speed up public transport projects, such every bit the Bus Rapid Transit extension in Reno, and the metro construction in Los Angeles.3

28. Governments could also envisage cooperation with both public transport providers and businesses in two ways. Firstly, to support the shift towards public transport pricing schemes that make more efficient use of send capacity (e.1000. pinnacle/off-peak pricing) and secondly, to encourage more flexible working schedules and remote working where possible. In parallel, investment in electric vehicle charging infrastructure is a key opportunity for recovery packages, both for private vehicles and electrified public transport such as buses. Charging plans need to take into account the opportunity price for other modes besides as public space used.

29. As economical activity resumes, in that location is an opportunity to reallocate road space and encourage active transport, every bit a means to create jobs, reduce emissions, improve resilience and even boost public health. At least150 cities effectually the earth take already taken emergency action to create temporary cycle lanes and other space for active send that allows for social distancing rules (ITF, 2020). To brand these temporary changes permanent, stimulus measures could support redesigning road space away from cars to more sustainable modes (with a holistic view to heighten accessibility and promote safety) and fairly price information technology, building on evidence from the air quality and road safety improvements due to COVID-nineteen lockdown measures. Agile transport modes and micro-mobility (e.g. electric scooters, bike sharing schemes) will be cardinal to foreclose a big shift from public transport to the auto; supporting them with both investment and road reallocation is too important. R&D support could focus therefore in innovations around electric micro-mobility rather than exclusively on electric cars. Reconfiguration of route-space should besides consider the need to ameliorate accommodate freight movement (particularly of last-mile travel inside dense city areas) and ensure transition to cleaner fleets; especially every bit urban freight volumes could increment with higher need of e-commerce mail service-COVID. Pursuing an accessibility-based model, encouraging active and public send modes, will also set a better context for advancing and increasing effectiveness of phasing out fossil fuel subsidies (where these are still in place) and implementing ambitious carbon prices (OECD, 2019[13]).

Improving resilience of supply chains while accelerating the shift towards circular economy principles

30. The COVID-19 crunch has shone a spotlight on the resilience of global value bondage, which have go increasing complex and globalised in contempo decades. If firms seek to improve resilience by shortening supply chains or making them more than local, it will be important to ensure that such changes do not inadvertently increase emissions or other environmental impacts. Additionally, economical recovery policies may provide an opportunity to improve resources efficiency overall, including through exploiting job creation possibilities related to the circular economy.

31. Producing and shipping raw materials and manufactured goods along global supply chains is a key colonnade of global economic activity but also a major source of ecology pollution. Materials management already accounts for nearly two-thirds of global GHG emissions, and is projected to increase past two-thirds by 2060 under electric current trends (OECD, 2019[34]). Despite widespread policy efforts to encourage greater recycling and circularity of both production and consumption, the rate of recycled materials globally remains depression.

32. The pursuit of efficiency and minimised costs in recent decades has led to highly complex supply chains, ofttimes with global reach and concentration in Asia (particularly in the People'south Republic of China). This contributed to emissions reductions in developed countries, equally some emissions were effectively "off-shored" to countries higher up the value chains, because emissions are unremarkably measured based on where goods are produced rather than where they are consumed. The resulting complex supply bondage may in some cases be more exposed to risk of disruption, in function due to an accent on leanness and efficiency at the expense of redundancy and resilience. Another cistron is the geographic concentration of upstream actors, meaning for example that disruption of a single supplier tin ripple across multiple supply bondage. The sheer complexity of supply chains besides plays a part, as companies lack sensation of all the suppliers and secondary suppliers in their supply chains, making proper evaluation of risk challenging (Choi, Rogers and Vakil, 2020[35]). Nevertheless, if firms seek to improve resilience past shortening supply chains or edifice in back-up, information technology will even so be important to ensure that these changes exercise non atomic number 82 to increases in emissions or environmental impacts. For example, within the OECD area at that place is evidence that off-shoring led to overall reduction in emissions, due to relocation to regions with less GHG-intensive product (Garsous, 2019[36])

33. The recovery measures proposed past governments too nowadays an opportunity to seek greater circularity in supply chains, which tin act both to improve resource efficiency and resilience for businesses (by building greater resilience to supplier risks) and society (by reducing environmental risks). In round value bondage, waste is minimised and end-of-life products are recovered for reuse, remanufacture, and recycling. This is accomplished through improved production design (eastward.g., for disassembly, remanufacturing and recycling) and increased efficiency in the use of material resources, which generates a number of benefits. The availability of recycled materials and products for reuse and remanufacture leads to new sources of supply and supports the diversification of supply chains. Circular value chains also help to advance climate mitigation via reduced primary material production and opportunities to shift consumption towards product-service and other round concern models). Governments can catalyse the uptake of circular value chains via dark-green public procurement (due east.g., the Netherlands' Most Economically Advantageous Tender procedure), removing trade barriers on scrap, landfill fees, Extended Producer Responsibleness, and capacity building amongst firms (OECD, 2019[37]); (Yamaguchi, 2018[38]).

34. An increased use of digital technologies for supply chain management tin also improve resilience and reduce the likelihood of disruptions, by providing data to identify and evaluate a number of resource efficiency risks and opportunities. On 1 hand, digitalisation lays the foundation for disclosure of climate-related risks by companies for example through the recommendations of the Job Force on Climate-related Fiscal Disclosure (TCFD). The recovery from COVID-19 opens an opportunity for governments to require both clear actions towards alignment with ecology policy objectives, as well as disclosure of climate-related risks as conditions for financial support through recovery policies. Still, this would need to be applied charily in club to avoid hindering activity through authoritative burdens, so may be best applied to larger firms. On the other manus, automation and digitalisation of industrial processes often enhances the efficiency of production – including by heavy industry – thereby reducing emissions. Governments tin can catalyse this shift by attaching conditions on stimulus packages to increase the uptake of these technologies, besides equally through targeted innovation policies. However, equally job cosmos is often at the center of stimulus measures, the implications of automation for the piece of work force would need careful consideration and active labour marketplace direction.

References

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Notes

← ane. Coined in 2006 in the aftermath of the 2004 Asian tsunami, by 2015 the term "Building Back Amend" was in widespread utilize by the Disaster Take chances Reduction (DRR) community and was incorporated into the priorities of the Sendai Framework for Disaster Take a chance Reduction (United Nations Office for Disaster Chance Reduction, 2015[40]). It more often than not refers to the recovery, rehabilitation and reconstruction phase after a disaster to increase the resilience of communities through the restoration of concrete infrastructure and societal systems. In that context, at that place is evidence that disasters did pave the way for regulatory and policy changes to enhance resilience and invest in prevention (OECD, 2014[39]). The emphasis is not only on preventative measures to reduce cost of recover, simply besides on incorporating social and environmental improvements for increasing well-being of impacted societies.

← 2. The stimulus measures enacted following the global financial crisis of 2008-09 included many examples of governments seeking to integrate aspects of sustainability, with varying degrees of success both economically and environmentally (Agrawala, Dussaux and Monti, 2020[17]). The similarities between COVID-xix and that crisis are however limited. The nature of the economic and social crisis currently engulfing the earth is fundamentally different, borne out of a deep and broad drop in demand right across the real economy, rather than emanating from the financial sector. Importantly, the environmental outlook is also different than it was in 2008. More a decade later on, the demand to deed on climate change and biodiversity is much more than urgent and more than broadly accepted by the public. In addition ten years of technological development accept seen vast cost reductions in key technologies.

← three. In Los Angeles, the COVID-xix crunch has helped L.A. Metro ( the transport authority) to overcome original opposition from residents, as speeding construction during this time will minimise structure impacts for local business concern when activities are renewed (Elation, 2020).

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Open up DOI

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